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TSMC Boosts CoWoS Packaging Machine Orders by 30% Amid Surging AI Chip Demand

TL;DR

  • TSMC boosts CoWoS machine orders 30% to meet soaring demand for AI chips.
  • CoWoS tech driving AI chip price surge; TSMC reaps benefits.
  • TSMC’s $2.89B investment signals commitment to AI chip market.

In a dynamic response to the surging demand for artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly increased its orders for Chip on Wafer on Substrate (CoWoS) packaging machines by a significant 30%. This move comes as TSMC’s clients, including tech giants like Amazon, AMD, Broadcom, and Nvidia, scramble to meet the rapidly growing usage of Generative AI models such as Bard, ChatGPT, and Dall-E. This surge in demand is driving TSMC to bolster its production capacity to keep pace with the insatiable hunger for AI chips.

TSMC’s CoWoS packaging technology

TSMC’s CoWoS chip packaging technology is gaining substantial attention, particularly from major American technology firms. The technology’s innovative capabilities are expected to increase AI chip prices in the coming months. This uptick in demand is a boon for TSMC, providing much-needed orders when the semiconductor industry is struggling.

Meeting the demand

As things stand, TSMC currently manufactures approximately 12,000 wafers per month using its CoWoS packaging machines. However, to meet the soaring demand for AI chips, TSMC strategically increased its machine orders in May of this year. This expansion boosted production capacity to roughly 15,000 to 20,000 wafers monthly. Building on this commitment, TSMC has escalated its efforts further, with an additional 30% increase in machine orders this week.

Future production estimates

With this recent boost in machine orders, TSMC is poised to significantly ramp up its production capacity. By the second quarter of 2024, the company is anticipated to be capable of manufacturing approximately 30,000 wafers per month. This surge in production capacity aligns with the growing demand for AI chips, ensuring that TSMC remains a crucial player in meeting the industry’s needs.

Collaborating with local companies

TSMC is taking a multi-pronged approach to secure the necessary equipment for its ambitious production goals. The company has reportedly engaged with several local businesses, including AllRing-Tech, E&R Engineering Corporation, Grand Process Technology, Group Up Industrial, and Scientech Corporation, to procure additional CoWoS packaging machines. These strategic collaborations are instrumental in ensuring the timely acquisition and installation of the required machinery.

Investment in packaging capacity

Its substantial investments further underscored TSMC’s commitment to meeting the demand for AI products. In July, the company announced a staggering $2.89 billion investment in a new chip packaging facility in Taiwan. This strategic move is part of TSMC’s broader effort to upgrade its packaging capacity to accommodate the robust demand for AI products. This investment signifies TSMC’s dedication to remaining at the forefront of semiconductor technology and meeting the evolving needs of its clients.

As the demand for AI chips rises, the Taiwan Semiconductor Manufacturing Company (TSMC) is making strategic moves to keep up with this insatiable appetite. With a 30% increase in CoWoS packaging machine orders, collaborations with local companies, and significant investments in packaging capacity, TSMC is positioning itself as a pivotal player in the AI chip supply chain. This surge in demand benefits TSMC and highlights the critical role that cutting-edge technology and semiconductor manufacturing play in powering the AI revolution. TSMC’s actions underscore its commitment to staying ahead of the curve and driving innovation in the semiconductor industry.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com has no responsibility for any investments made based on the information on this page. We recommend reliable research and/or consultation with a qualified expert before making any investment decisions.

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Glory Kaburu

Glory is an extremely knowledgeable journalist proficient with AI tools and research. She is passionate about AI and has authored several articles on the subject. She keeps herself abreast of the latest developments in Artificial Intelligence, Machine Learning, and Deep Learning and writes about them regularly.

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